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wtf is polymarket-arbitrage-trading-bot?

money-takers/polymarket-arbitrage-trading-bot — explained in plain English

Analysis updated 2026-05-18

119TypeScriptAudience · developerComplexity · 3/5LicenseSetup · moderate

TL;DR

An automated trading bot that runs a dump and hedge arbitrage strategy on Polymarket's 15 minute crypto Up or Down markets.

Mindmap

mindmap
  root((Polymarket Bot))
    What it does
      Dump and hedge strategy
      15min Up/Down markets
      Simulation mode
    Tech stack
      TypeScript
      Gamma API
      CLOB API
    Use cases
      Automated arbitrage
      Risk limited hedging
      Config via .env
    Audience
      Crypto traders
      Developers

Code map

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filefunction / class

Why would anyone build with this?

REASON 1

Automatically detect sharp price drops and buy the discounted side of a 15 minute market.

REASON 2

Lock in guaranteed profit by hedging once combined outcome prices fall below a target.

REASON 3

Run in simulation mode to test the strategy before risking real funds.

REASON 4

Configure position sizing, timing, and stop loss parameters through a .env file.

What's in the stack?

TypeScriptNode.js

How it stacks up

money-takers/polymarket-arbitrage-trading-botboona13/glb-shrinkonfable/onfable
Stars119119120
LanguageTypeScriptTypeScriptTypeScript
Setup difficultymoderateeasyeasy
Complexity3/52/53/5
Audiencedevelopervibe coderdeveloper

Figures from each repo's GitHub metadata at analysis time.

How do you spin it up?

Difficulty · moderate Time to first run · 1h+

Live trading requires a funded Polymarket wallet with USDC.

Apache 2.0 license, use freely including commercial use with attribution and patent protection.

Wtf does this do

This is an automated trading bot for Polymarket's fifteen minute cryptocurrency Up or Down prediction markets, covering assets like Bitcoin, Ethereum, Solana, and XRP. On these markets you bet on whether a price will be higher or lower at the end of a fifteen minute window, and this bot automates a specific strategy the project calls dump and hedge. The strategy works like this: during the first few minutes of each market period, the bot watches for a sharp, sudden price drop on one side of the bet, called the dump. When it spots one, it buys that discounted side cheaply, referred to as Leg 1. It then tracks the combined cost of both outcome tokens together. Because a binary market always pays out exactly one dollar total between the two sides, buying both for less than a dollar locks in a guaranteed profit. Once the combined price falls to a target threshold you configure, for example ninety five cents, the bot buys the opposite side, called Leg 2 or the hedge, locking in the difference as profit. If that hedge opportunity never arrives before a time limit you set, the bot hedges anyway at a worse price simply to limit losses. By default the bot runs in simulation mode and places no real orders, so you can watch it work before risking money. Switching to live trading is a single environment variable change. Configuration options cover position sizing, how sensitive the dump detection is, timing windows for each phase, and stop loss parameters, all stored in a .env file. The bot talks to Polymarket through its Gamma API for market discovery and its CLOB API for placing orders. Running it for real requires a funded Polymarket wallet holding USDC. The project is released under the Apache 2.0 license. The full README is longer than what was shown.

Yoink these prompts

Prompt 1
Help me set up this Polymarket arbitrage bot in simulation mode first.
Prompt 2
Explain the dump and hedge strategy this bot uses in simple terms.
Prompt 3
Walk me through configuring the .env file for conservative risk settings.
Prompt 4
Show me how to fund and connect a Polymarket wallet for live trading with this bot.

Frequently asked questions

wtf is polymarket-arbitrage-trading-bot?

An automated trading bot that runs a dump and hedge arbitrage strategy on Polymarket's 15 minute crypto Up or Down markets.

What language is polymarket-arbitrage-trading-bot written in?

Mainly TypeScript. The stack also includes TypeScript, Node.js.

What license does polymarket-arbitrage-trading-bot use?

Apache 2.0 license, use freely including commercial use with attribution and patent protection.

How hard is polymarket-arbitrage-trading-bot to set up?

Setup difficulty is rated moderate, with roughly 1h+ to a first successful run.

Who is polymarket-arbitrage-trading-bot for?

Mainly developer.

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